In this paper we analyse whether it should be the government of each country that decide whether to privatise its publicly-owned firms (non integration) or whether this decision should be delegated to a supra-national authority (economic integration). We assume that there are two countries which form a single market in which there is free trade and each country has one publicly-owned company and n private companies. We show that the aggregate social welfare is greater if the supra-national authority decides whether or not privatise publicly-owned companies. We also show that it is better that these companies be owned by the countries in which they are located instead of a supra-national authority.